Finance
The Odisha government has decided to create a Unified Pension Scheme (UPS) for state government employees. The state Cabinet voted on Friday to introduce this system for employees who are qualified for a pension under the NPS system.
The key features of the Unified Pension Scheme (UPS) include:
- Assured Pension: For a minimum qualifying period of 25 years, a pension of 50% of the average basic pay or basic pay earned in the 12 months preceding retirement will be available. Pension will be available pro rata for the period of service starting from a minimum period of 10 years up to 25 years.
- Assured Family Pension: A family pension of 60% of the pension that the employee was drawing before death will be available.
- Assured Minimum Pension: A monthly pension of Rs. 10,000 will be available after retirement after completing a minimum period of 10 years of service.
- Inflation-adjusted pension: On top of guaranteed pension, guaranteed family pension and guaranteed minimum pension, dearness relief will be available for industrial workers in the case of service employees based on the Consumer Price Index.
- Lump sum after retirement in addition to gratuity: One-tenth of the monthly salary drawn on the date of retirement will be available as a lump sum for every complete six months of service. The amount of guaranteed pension will not be reduced due to this amount.
Employees under NPS might choose to work for UPS or remain with NPS.
UPS will provide a guaranteed family pension benefit in the event of a government employee’s death after retirement, which was not available in the NPS.
